KUAIX — Krane UBS China A Share Fund

KUAIX Fund Overview

KUAIX — Krane UBS China A Share Fund is a US mutual fund managed by Krane Shares Trust, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Krane Shares Trust
• Category: Money Market
• Assets under management: $1.56M
• Ticker: KUAIX
• SEC CIK: 0001547576
• SEC series ID: S000070727
• Share class ID: C000224834

KUAIX Investment Objective and Strategy

Krane UBS China A Share Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Krane Shares Trust.

Investment objective

Krane-UBS China A Share Fund (the Fund) seeks to maximize capital appreciation.

Principal investment strategy

The Fund seeks to achieve its objective by investing, under normal circumstance, at least 80% of the Funds net assets (plus borrowings for investment purposes, if any) in China A-Shares and other instruments that have economic characteristics similar to such securities. China A-Shares are Chinese renminbi (RMB)-denominated equity securities issued by companies incorporated in mainland China. Direct investments in China A-Shares are currently possible only through the trading and clearing facilities of a participating exchange located outside of mainland China (Stock Connect Programs) or Renminbi Qualified Foreign Institutional Investor (RQFII) or Qualified Foreign Institutional Investor (QFII) license. Currently, the Fund intends to invest in China A-Shares through Stock Connect Programs. UBS Asset Management (Americas) Inc., the Funds sub-adviser (UBS or Sub-Adviser), believes that there are discrepancies between the market price and its estimate of a companys value due to market behavior and market structure, which provide an opportunity to outperform the market.

To take advantage of these opportunities, UBS seeks to identify upcoming industry leaders in key growth sectors early in a companys lifecycle and when the companys share price trades below UBSs estimate of the companys value. UBS selects investments based on the attractiveness of their valuations, top down macro factors, and a conviction that its investment thesis is likely to be realized. UBSs investment process for the Fund is driven by bottom-up proprietary research. UBS starts with all China A-Shares trading through Stock Connect Programs. UBS conducts extensive valuation analysis incorporating company/industry fundamentals, future operations, and cash generation. UBS will assess companies based on the industry structure and companys competitiveness, company trends, profitability and sustainability of such trends and profitability, and the companys governance, disclosure, environmental and social practices.

UBS also looks at industry peers and historical and forward looking financials in evaluating companies. UBS attempts to exclude companies exhibiting what they view as unsustainable business models, poor corporate governance practices, and negative industry dynamics. While UBS seeks to construct a concentrated, high-conviction portfolio of its best ideas, UBS attempts to remain diversified across many sectors and, generally, no single position will be more than 10% of the Funds net assets at the time of investment. However, from time to time, based on market or economic conditions, a single position may exceed 10% of the Funds net assets at the time of investment. UBS uses a benchmark agnostic approach in selecting its investments (i.e., UBS does not take into account any benchmarks in selecting its investments for the Fund).

In addition to China A-Shares, which are described above, the Fund may invest up to 20% of its net assets in the following China-related securities: ? China B Shares, which are shares of companies listed on the Shanghai or Shenzhen Stock Exchange but quoted and traded in foreign currencies (such as Hong Kong Dollars or U.S. Dollars), which were primarily created for trading by foreign investors. ? China H Shares, which are shares of companies incorporated in mainland China and listed on the Hong Kong Stock Exchange (H-Shares), where they are traded in Hong Kong dollars and may be traded by foreign investors. ? China N Shares, which are shares of companies with business operations in mainland China and listed on an American stock exchange, such as NYSE or NASDAQ (N-Shares). ? P-Chips, which are shares of private sector companies with a majority of their business operations in mainland China and controlling private Chinese shareholders, which are incorporated outside of mainland China and traded on the Hong Kong Stock Exchange in Hong Kong dollars.

? Red Chips, which are shares of companies with a majority of their business operations in mainland China and controlled by the central, provincial or municipal governments of the PRC, whose shares are traded on the Hong Kong Stock Exchange in Hong Kong dollars. ? S-Chips, which are shares of companies with business operations in mainland China and listed on the Singapore Exchange. S-Chip shares are issued by companies incorporated anywhere, but many are registered in Singapore, the British Virgin Islands, the Cayman Islands, or Bermuda. ? Depositary receipts and depositary shares, including American Depositary Receipts or Global Depositary Receipts, of companies that are economically tied to China. For purposes of the Funds 80% policy, at times, the Fund may include China-related securities toward the 80% minimum if the Sub-Adviser determines such China-related securities have economic characteristics similar to China A-Shares.

The Fund may invest in companies across all market capitalization ranges and companies at the time of their initial public offering (IPO). The derivatives in which the Fund may invest include options (including options on securities, indices, futures, forwards, and swap agreements), futures, forward currency agreements, swap agreements (including interest rate, total return and currency), and equity participation notes and equity linked notes. All of the derivatives listed above may be used for risk management purposes; for investment (non-hedging) purposes; to earn income; to enhance returns; to replace more traditional direct investments (except for forward currency agreements); to obtain exposure to certain markets; or to establish net short positions for individual currencies (except for equity participation notes).

Futures on currencies and forward currency agreements may also be used to hedge against a specific currency or potential changes in currency exchange rates. The Fund may invest in cash or cash equivalent instruments, including shares of affiliated investment companies or money market funds. The Fund may engage in securities lending.

KUAIX Costs and Fees

KUAIX costs about $149 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.49%
• Gross expense ratio: 1.55%
• Brokerage commissions: 12.22 bps of average net assets (SEC N-CEN)

KUAIX Cashflows

Over the 12 months to 2022-03, Krane UBS China A Share Fund had net inflows of $2.00M, from monthly SEC N-PORT filings.

KUAIX Debt Constituents

No individual debt constituents are reported in Krane UBS China A Share Fund's latest SEC N-PORT filing.

KUAIX Prospectus and SEC Filings

Official Krane UBS China A Share Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2021-07-30
• Prospectus (485BPOS) — filed 2021-02-24
• Portfolio holdings (N-PORT) — filed 2022-05-31
• Portfolio holdings (N-PORT) — filed 2022-02-28
• Portfolio holdings (N-PORT) — filed 2021-11-26
• Annual census (N-CEN) — filed 2022-06-14

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Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.